Making Offers in a Hot Sellers’ Market

The real estate market in central Ohio has been a hot seller’s market for more than a year, with all indications that it will continue (at least, in the short term).   Competition is fierce and making your offer stand out is a challenge.  Anne Miller, a contributor to Realtor.com wrote an article in 2014 that contained some tips to help close the transaction.  Most of her tips are still valid in today’s seller’s market:

1. Make sure you have a good agent. You need an assertive, experienced agent who knows the market and moves quickly to present your offer to the seller.   A good agent will help you with options that may sound strange in a slower market, but may help the seller to choose your offer over another.
2. A substantial earnest money deposit. A reasonable deposit will be about 3%.  This shows the seller that you are serious.
3. Money talks. If you can afford a 30% or 40% down payment (or more), this will temp sellers.  In the long run, it will also save you money on the mortgage because you can shorten the length of your loan and reduce interest payments.  Also, if possible, get a pre-approval lender from your lender for the exact amount of the offer, so show the seller that you can get the financing needed.
4. Offer to close quickly. Most sellers want to make it a speed transaction.  Standard closings occur in 30 days.   Offer to close in 3 weeks.
5. Offer to waive some of the contingencies usually included in a standard contract. For example, line up your home inspector ahead of time, and then offer to shorten the inspection period.   Before you agree to waive any contingencies, however, you should check with your attorney.
6. Be nice. This can take many forms.    If the sellers needs a couple of days after closing to vacate the property, consider giving them that time rent-free.   If there are a few things that you would ideally like them to fix – but if they are not deal breakers, consider letting them go.

Ultimately, the question comes down to how much do you really want the home?  In a sellers’ market, you’ll probably have to give more in many ways.  But hopefully your perseverance will pay off when the seller accepts your offer. If you’re thinking of selling your home, contact us at WestlakeCapitalSolutions.com.  We can make the process much less painful with all-cash, as-is offers for your property.  Don’t worry if it needs some work.  We will take care of all renovations, freeing you from the headaches.